Chrysler 2005 Annual Report Download - page 31

30 Reporton Operations Financial Review of the Group
01 Report on Operations
Unusual financial income of 858 million euros was booked in 2005 relating to the capital increase of September 20, 2005 following the
conversion of the Mandatory Convertible Facility.The income represents the difference between the subscription price of the shares and
their stock market price at the date of subscription (see the Notes to the Consolidated Financial Statements for additional details).
Investment income was 34 million euros in 2005, down 101 million euros from 2004. The result for 2005 was impacted by allowances
for risks and charges of 74 million euros on investments in China (20 million euros in 2004). The effect of the sale of Italenergia Bis and
the consolidation of Fiat-GM Powertrain on a line by line basis, no longer accounted for by using the equity method, also had an impact.
Result before taxes increased from the loss of 1,629 million euros of 2004 to the income of 2,264 million euros of 2005. The improvement
totals 3,893 million euros and is attributable for 2,800 million euros to the increase in operating result, for 858 million euros to the unusual
financial gain posted in 2005, and for 336 million euros to lower net financial expenses, offset by lower income from equity investments
(down by 101 million euros).
Income taxes totalled 844 million euros in 2005 and include 277 million euros for the reversal of deferred tax assets posted at December 31,
2004 byFiat S.p.A. in connection with the income resulting from the termination of the Master Agreement with General Motors. The
remaining amount includes: 116 million euros for IRAP, 332 million euros for current and deferred tax charges, primarily attributable to
companies outside Italy, and 119 million euros in income taxes for previous years. In 2004, income taxes totalled 50 million euros, of which
122 million euros for IRAP and 217 million euros for other current income taxes, which were offset by the recording of deferred tax assets
of 389 million euros.
Net income beforeminority interest was 1,420 million euros in 2005, against a loss of 1,579 million euros in 2004.
Group interest in net income amounted to 1,331 million euros in 2005, against a loss of 1,634 million euros in 2004.